Nearly 14 percent of mortgage loans on one-to-four unit properties were at least one month delinquent or in some stage of foreclosure at the end of the second quarter, according to the Mortgage Bankers Association.
That’s actually down from 14.01 percent last quarter, but could be deceiving given the large number of loan modifications in process (and they’re horrible re-default rates) and various mortgage lender backlogs.
The delinquency rate (loans that are at least one mortgage payment behind) dropped to a seasonally adjusted rate of 9.85 percent, down from 10.06 percent a quarter earlier, but up from 9.24 percent a year ago.
The seriously delinquency rate, loans that are 90 days or more past due or in the process of foreclosure, was 9.11 percent, down from 9.54 percent in the first quarter, but well above the 7.97 percent rate seen in the second quarter of 2009.
Meanwhile, the foreclosure rate was 4.57 percent, down from 4.63 percent in the first quarter, but up from 4.30 percent last year.
The percentage of loans on which foreclosure actions were started during the second quarter was 1.11 percent, down from 1.23 percent last quarter and 1.36 percent a year ago.
“These latest delinquency numbers contain a mixture of somewhat good news and somewhat bad news,” said Jay Brinkmann, MBA’s chief economist, in the report.
“The good news is that foreclosure starts are down and the inventory of homes anywhere in the process of foreclosure fell for the first time since 2006 and had the largest drop since 2005. Loans 90 days or more past due, the largest share of delinquent loans, also fell. The fact that both the 90+ delinquency rate fell and the foreclosure start rate fell means that a significant number of these seriously delinquent loans have been successfully modified and reclassified as performing, current loans.”
However, the rate of short-term delinquencies has increased and that may drive a new batch of foreclosures – the percent of loans one payment behind, which had peaked at 3.77 percent in the first quarter of 2009, climbed to 3.51 percent during the second quarter, up from 3.31 percent at the end of 2009.
Brinkmann attributed the increase to a rise in unemployment claims, which fell through most of 2009 before plateauing and eventually rising again recently.
“Ultimately the housing story, whether it is delinquencies, homes sales or housing starts, is an employment story,” he added. “Only when we see a consistent increase in employment will we see an increase in sales and starts, and a sustained improvement in the delinquency numbers.”
Jim Fite is a broker and co-owner of CENTURY 21 Judge Fite in Dallas, Texas, which has 1,100 agents, 23 offices, and 120 employees. The firm also offers title, mortgage, insurance, and property management services, operates a real estate school, and maintains a vetted network of close to 200 vendors to recommend to clients. The company is consistently named Best Place to Work by the Dallas Business Journal.
We recently sat down with Jim to talk about his new book “Success Through a Recession: Lessons Learned to Help YOU!”
Realty Biz News: What made you decide to write the book “Success Through a Recession?”
Jim Fite: “Success Through A Recession” was a long time coming. After “succeeding” through six (now on the 7th) recessions, I have learned a lot. There are business degrees, MBA courses, seminars, and books written about how to “build” a business. I have never seen one on what you do during the “Good Times” to prepare for the “Tough Times.” I started the outline in 2009 during the Great Recession. Then during the summer of 2022, I realized that I had to write a book. Business owners just don’t know how to navigate the process when there are more expenses than income.
RBN: Tell me about the book.
Jim: “Success Through A Recession” is a “How To” book! There are practical examples of what to do and what not to do, from developing core values to the establishment of long-range goals and how to hire the right people and take great care of them. I also talk about communication with all levels of the company, both internally and externally, and how to negotiate leases or purchase commercial properties to build a relationship with your banker. For when the “Tough Times” appear, I also make recommendations on how to make a plan and execute the plan in order to maximize results. And finally, the last chapter is about spiritual guidance.
RBN: What are the top takeaways that you would like real estate professionals and others to take away from the book?
Jim: “Success is a journey, not a destination.” The journey is for the benefit of your people, including clients, agents, staff, and leadership – everyone! There will be tough decisions that must be made, and the leader has to make them, then rally your valued people, and execute the well-thought-out plan. When mistakes are made, fix them quickly and communicate the improvements quickly.
RBN: As a long-time real estate professional, what are the things that you see as common threats to real estate brokers and agents during the downturn?
Jim: The most common threat to brokers and agents is their ATTITUDE! They watch the news, listen to the news, and then they listen to other agents who are negative about the market. My father used to say, “Never go to lunch with anyone until you have seen their 1099!” In other words, surround yourself with like-minded people. Take care of yourself, physically, mentally, and spiritually. NEVER GIVE UP!
RBN: What do you tell less experienced REALTORS® to help keep them motivated during the downturn in the market?
Jim:Read my book! I’ve captured 51 years of wisdom and experience for their benefit. Dad also said, “Learn from smart people. Learn from others’ experiences. It’s a lot cheaper than having your own.”“Success Through a Recession” by Jim Fite can be found on Amazon.com in hardback, paperback, and Kindle. All proceeds will be donated to the Judge Fite Charitable Foundation.
Find topics in marketing, technology, and social media for realtors, and housing market resources for homeowners. Be sure to subscribe to Digital Age of Real Estate.
This week, we interviewed Chris Pawlick from EPR^2.
Without further ado…
Who are you and what do you do?
My name is Chris Pawlik and I’m the Founder/CEO of EPR^2. Our Company develops existing energy rights on behalf of property owners by utilizing solar and other cleantech to increase property-level NOI and value. Our Company funds the construction of the solar panels, ongoing maintenance, and future upgrades. Landlords are given an up-front payment—or roof upgrade if needed— and are guaranteed energy savings over the going rate while also increasing the value of their building by 5-10%. We recently completed a Pilot Program with Basin Street Properties on three buildings in Sacramento, Santa Rosa, and Petaluma that prevents over 1,700 tons/year in carbon emissions and brought in over $1.4MM in value to the owners, without any capital expenditure/investment from their side.
What problem does your product/service solve? We are addressing the unmet market demand for viable CleanTech in the CRE, multi-tenant sector. Our technology effectively accelerates the deployment of cleantech on existing buildings without causing the landlord any added investment burden, risk, or maintenance. This video might give better background.
What are you most excited about right now?
I’m most excited about the convergence of opportunities that indicate that there is going to be massive investment over the coming decades in the upgrade of our electric infrastructure as well as new, distributed energy generation and management technologies.
What’s next for you?
We’re focused on developing new projects, creating a technology platform for energy rights and EPR development (internally and for 3rd parties), and we are considering whether to raise money to pull forward our strategic plan to scale our business. We are also growing the reach of our first in class “Energy Rights estimation tool” that allows anyone to find out the monetary value of their property’s energy rights.
What’s a cause you’re passionate about and why?
Outside of my interest/passion for a clean environment through sustainable business/infrastructure, I believe the money and resources to end poverty as we know it are available today. With that in mind, I support PATH, veteran groups, and mental health organizations in southern CA and beyond. In addition, as a former Division 1 water polo athlete at UC Berkeley, I decided to give back to the community I grew up in by coaching a youth water polo team. I believe that physical fitness supports mental strength and playing a team sport provides an opportunity for athletes to learn valuable lessons related to respect, responsibility, and resiliency as well as communication, preparation, and teamwork.
Thanks to Chris for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop us a line (Community @ geekestate dot com).
It’s not very common for mortgage lenders to offer cash back or some other sort of reward for taking out a mortgage.
Generally, you might get some sort of closing cost guarantee or some assurance that if they screw up, you’ll be compensated. Really, that’s just making you whole.
But Chase is looking to change that by offering a very healthy 100,000 Ultimate Rewards points (their own rewards currency) for those who apply for a mortgage (and close the sucker).
Update: They have lowered the bonus to 75,000 Ultimate Rewards points, but now offer a bonus across multiple different credit cards.
Chase Is Targeting Sapphire and Other Credit Card Customers
Get 75,000 UR points if you have Chase Sapphire Reserve
50,000 UR points if you have Chase Sapphire Preferred
25,000 UR points if you have Chase Sapphire (no fee version)
25,000 UR points if you have Chase Freedom or Freedom Unlimited
75,000 United Miles if you have Chase Mileage Plus Club
50000 United Miles if you have Chase Mileage Plus Explorer
In order to be eligible for this rather handsome bonus, you need to be an existing Chase credit card customer with either the Chase Sapphire Preferred card or the Chase Sapphire Reserve.
It has since been opened up to those with a Chase Sapphire (no fee version), a Freedom or Freedom Unlimited card, and those with Chase co-branded United credit cards.
Assuming you’ve got one of those, you need to take out a “new, residential first mortgage” with the bank. In other words, a purchase loan. You can’t just refinance your existing mortgage to snag the big bonus.
This appears to be a push to capture more purchase-money business, an emerging trend in the industry ever since mortgage rates began to increase and shrink the eligible pool of borrowers.
The loan application must also be submitted to Chase between March 19th and August 31st 2018, and as noted earlier, must actually fund and close.
Within 10 weeks of closing, Chase will deposit the bonus Ultimate Rewards to the primary cardholder’s account. In practice, they tend to credit these bonuses a lot quicker.
Is This Chase Mortgage Bonus a Good Deal?
It depends on how you value the UR points
And how low the rate and closing costs are with Chase
As opposed to using a different mortgage lender
That might offer a better rate/fee combination
Well, that all depends. Many value Ultimate Rewards points at nearly 2 cents apiece, which equates to $2,000. But their value is dependent on how they are used.
If you simply cash them in, which you’re more than welcome to do, you’ll only get as much as $750. Still, nothing to sneeze at.
Alternatively, if you use them for business class airfare, you might be able to get thousands of dollars in value out of them.
But then you have to ask yourself if acquiring frequent flyer miles is your goal when taking out a mortgage.
For me, if Chase happens to offer the best pricing and service, or close to it, the 75k bonus points could be enough to sway your decision.
On the other hand, if you can get a better mortgage rate elsewhere, with lower closing costs, the benefit of those points could evaporate quickly.
It should also be noted that the bonus might result in a 1099 (be taxed), whereas traditional credit card rewards aren’t taxed because they’re considered a rebate. That reduces the perceived benefit even more.
The good news is the mortgage market seems to be getting more competitive as lenders fight over less business. That sounds like a positive trend for prospective borrowers.
Chase has been working on revamping its mortgage business of late, promising a digital mortgage experience to keep up with the likes of SoFi and Quicken’s Rocket Mortgage.
They also recently announced the hiring of HGTV’s Property Brothers to promote their home loan lending business. It seems to be an attempt to make mortgages cool, or perhaps more appealing to Millennials, given the many new startups in the space.
As always, be sure to comparison shop before deciding on one lender to get perspective, otherwise you won’t know if you’re sitting on a good deal or a bad deal.
Don’t it always seem to go That you don’t know what you got till it’s gone? They paved paradise, put up a parking lot …
—Joni Mitchell
It seemed like old times at my favorite Hollywood restaurant the other night. The rains had stopped and everyone was coming out for their favorite California comfort food. A fire was crackling in the fireplace and dessert soufflés were puffing up in the ovens. The party room upstairs was packed with 35 colleagues at a celebratory business dinner and downstairs every table was filled. But something strange was happening.
When diners finished their meals, they took out their phones and began photographing the place. Pictures on the walls had price tags on them. So did lamps and antique tables. Every now and then people hugged each other and wiped away tears. I was one of them.
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This was the last week of life for Off Vine restaurant, a treasured refuge from the hurly burly of Sunset Boulevard, housed in a bungalow with a 115-year history, a repository of countless, colorful movieland stories.
For me, this was personal. Off Vine had become my own Cheers. Like the theme of the TV show, it was the place “Where everybody knows your name / And they’re always glad you came.”
With my friends and neighbors I found camaraderie and a warm welcome at Off Vine for over 30 years. Like so many other Angelenos, we built memories here and shared delicious meals.
“You’re crying for a restaurant?” she said.
“No,” I said. “I’m crying for all we are losing.”
We also formed a society here called the Oy Luck Club, a tongue-in-cheek title that conveyed this was a place to have a good time. We celebrated birthdays and anniversaries. Some of us brought our children as babies and they grew up with this special group of “aunts” and “uncles.” They are now adults and still came back to Off Vine as if it were a second home, a family home. It was the glue that bound us together for the rest of our lives.
How can I tell you why Off Vine matters? If you have been there for a festive brunch on the graceful patio with its bowers of bougainvillea, you may understand. If you took family there for birthday dinners or, like one of my friends, you hosted foreign dignitaries for lunch to show them another side of Hollywood, you will understand.
Recently a friend told me, “You will have to find a new place to go instead of Off Vine.”
I caught my breath, whispered, “I can’t” and began to cry.
“You’re crying for a restaurant?” she said.
“No,” I said. “I’m crying for all we are losing.”
The owners did not plan this. They hoped to stay for a long time. But this is a story of the cost of insensitive development, the devaluation of our city’s history and a place that deserves to be preserved. Otherwise, a treasured piece of Hollywood history will soon be unremembered by anyone.
Hollywood legends
My own story is linked indelibly to the history of Hollywood.
Long ago and far away in a land called New Jersey, I spent many snowy days of childhood dreaming of a magical place called Hollywood where it was always warm and movie stars were everywhere. My dreams were enhanced by movie magazines, which showed a never-ending stream of glamorous actors dining and dancing at night clubs like Ciro’s, Cafe Trocadero, Mocambo and the Earl Carroll Theatre.
Food and drink played a role in the glamour life. Stars had private booths at the likes of Chasen’s and the Brown Derby, where an artist drew caricatures of the famous that hung on the walls. Even a soda fountain, Schwab’s, was famous because legend had it that Lana Turner had been discovered there sitting on a stool sipping a milkshake.
Years later, I would move to Hollywood, but those places were mostly gone, torn down in the march toward modernization. The celebrated history of the movie capital would become confined to the footprints at Grauman’s Chinese Theatre (now TCL Chinese Theatre), stars on the sidewalk and books about its fabled past. As a journalist with the Associated Press, I had the chance to interview stars at the Brown Derby with its big brown hat on the rooftop looming over Hollywood. But soon that too was gone, as was C.C. Brown’s, the birthplace of the hot fudge sundae.
So often I’d strike out when I went in search of a Hollywood landmark such as the Garden of Allah residential hotel, where stars such as Errol Flynn and famous writers including F. Scott Fitzgerald and Dorothy Parker lived and partied in their heyday. I found it had been demolished and replaced by a bank (which was itself torn down a couple of years back for a never-built Frank Gehry project).
But all was not lost. One day in 1989 I was driving around Hollywood with my best friend and fellow reporter, Theo Wilson, when she and I discovered a remaining piece of the wonderland I‘d been searching for. It was a small, hidden oasis of a restaurant called Off Vine. Tucked away on a street just south of Sunset Boulevard and east of Vine Street, it was a delightful bungalow with a traditional porch and an outdoor patio. When we stepped inside, the warming fireplace, coffered ceilings and vintage pictures of old-time stars and movie premieres made us feel we had come home. We learned the place had a colorful Hollywood history and just recently had opened as an eating place.
We sat down for a meal of California cuisine coupled with old-fashioned comfort food that pleased our taste buds. We knew this place was a keeper.
Over the years it became our go-to destination for brunches, dinners, birthdays and pretheater meals. We brought neighbors from our Hollywood Heights enclave and founded the Oy Luck Club, a name that reflected the lighthearted intent of the members who were part of a unique community that was not the glitzy movie capital but was Hollywood, a small town with homes and shops, block parties and interesting people.
At one time there were so many of us that we brought our own huge, round tabletop that unfolded to accommodate up to 16 people, our own version of the Algonquin Round Table.
Amid this idyllic camaraderie, we never imagined that one day we would lose our treasured piece of history and community. Sadly, that time appears to be now unless some rescuer turns up at the last minute to save it.
The parcel of land on which the restaurant sits has been sold to an investor who plans to tear it down and put up a row of apartments on the whole block. Off Vine sits on what will become an underground parking garage. (Cue the Joni Mitchell song.)
For the record:
12:29 p.m. March 29, 2023The final Oy Luck Club gathering at Off Vine was on a recent Saturday, not a Sunday as originally stated.
A couple of Saturdays ago the surviving members of Oy Luck Club gathered at Off Vine to celebrate two birthdays and reminisce about our beloved clubhouse.
One of those being feted was Diva Ward, 31, who had first come to an Oy Luck at Off Vine as an infant in the arms of her mother, Carol, who flew in from Wisconsin for the event. Also celebrating was architect Michael Mekeel, a founding member of Oy Luck. The oldest member present was famed actor Alan Oppenheimer, 92.
We ordered favorites from the brunch menu: a huge Belgian waffle with berries and bacon, eggs Benedict with exquisite hollandaise sauce, omelets, a breakfast quesadilla and salads. The grand finale was, as always, the signature Off Vine soufflé available in chocolate, raspberry or Grand Marnier. It had to be ordered half an hour ahead but was worth the wait. Nowhere else have I ever tasted such a rich, puffy soufflé.
Movie-worthy history
We shared memories with co-owner Richard Falzone who has saved Off Vine repeatedly. Everyone listened as I recounted the colorful story of the little house, which itself could be the inspiration for a movie.
The classic Craftsman bungalow was built in 1908 on a dirt road surrounded by fruit trees and orange groves off a newly formed country path called Vine Street.
With the burgeoning film industry in its infancy, houses began popping up to accommodate the actors, crews and producers who came west to get in on the new art form.
The house at 6263 Leland Way off Vine Street eventually was purchased by theater and nightclub impresario Earl Carroll for the actress and showgirl Beryl Wallace.
Carroll discovered Wallace in New York and put her onstage in his famous and somewhat scandalous “Vanities,” which featured elaborate productions with beautiful, scantily clad showgirls. She was his star. The two fell in love and for the next two decades she would be his girlfriend and constant companion. When he left Broadway under a cloud due to increasingly risqué shows, he decided to go West to seek a new venue for his extravagant dreams. He brought Wallace with him to Hollywood, where she had small roles in 23 films and performed at the Earl Carroll Theatre, a supper club and entertainment venue on Sunset Boulevard. The building’s exterior bore a 24-foot neon likeness of Wallace with the slogan, “Through these portals pass the most beautiful girls in the world.”
The club, which was colossal in size and from 1997 to 2017 housed Nickelodeon’s TV production studios, is set for renovation and has been declared a historic monument. Built by Carroll in 1938, it housed a 1,000-seat showroom where productions featured 60 showgirls performing on a double revolving stage. Members of Hollywood royalty were among those who paid $1,000 each for VIP lifetime memberships.
Wallace was its premier star, and Carroll felt she needed a residence that would also serve as a retreat between shows. He purchased the charming bungalow on Leland Way that became Wallace’s home. Later her mother lived with her there while the town of Hollywood grew around them. The Pantages Theatre is a few blocks away and the Cinerama Dome is around the corner. Schwab’s was up the street at Hollywood and Vine.
But not all Hollywood stories have happy endings. Tragedy struck in 1948 when Wallace and Carroll, en route to New York to discuss an even bigger project, died together in a plane crash in Pennsylvania. A year later, her mother, suffering from depression over the loss of her daughter, committed suicide.
The little bungalow was home to Beryl’s sister for a time and then was rented to several short-term tenants, including a music production company and a shoe repair shop.
In 1989 it emerged from hiding and became the unexpected restaurant known as Off Vine, which offered an escape from the chaos and glitz that is current-day Hollywood. One historian of the area said of the spot: “It has survived through the Roaring Twenties, the Great Depression, Hollywood’s Silent and Golden eras, numerous earthquakes, ambitious landowners and, in 2007, a disastrous fire.” But even the electrical fire that gutted the upper story and forced closure of the restaurant for two years while repairs were done could not kill Off Vine. Its savior since 1997 has been Falzone, a former Broadway theater performer who came West in search of his movieland dreams.
He found an unexpected career change when he took a temporary job as a server at Off Vine. He loved the place, worked his way up to general manager and became a part owner with two partners. Eight months later the fire sparked in antiquated wiring panels devastated the house.
But Falzone persisted. He set up an office on the front porch to handle calls from loyal customers and to deal with the city and insurance companies. Two years later, the Craftsman bungalow, looking the same as ever, reopened. It took $750,000 to save it.
The owners were required to bring the house up to code and added a sprinkler system, larger restrooms, a wheelchair ramp and a new state-of-the-art kitchen. The upper floor, used for parties, was restored with its 13-foot coffered ceiling.
“Our journey has been long and tumultuous, full of struggles and setbacks,” Falzone said at the reopening ceremony. “It also has come to exemplify the strength of a community that has continually offered guidance, encouragement and support to a small business that found itself struggling to reopen its doors during one of the worst economic crises our country has ever seen.”
Then L.A. City Council president and future mayor Eric Garcetti said, “This Hollywood gem adds to the continued revitalization of our community.” Loyal customers, including the Oy Luck Club gang, returned in droves. The rebirth of the Pantages Theatre as a venue for Broadway road shows brought audience members there for pretheater meals.
Things were going so well that Falzone decided it might be time to apply for designation as a Hollywood historic landmark. He was supported by Hollywood Heritage, a preservation group whose co-founder, architect Fran Offenhauser, has spearheaded campaigns to save historic buildings from the wrecking ball.
But the arbiters of such decisions looked at its history and ruled that because of the fire, which resulted in a few visible exterior changes, Off Vine did not qualify.
Then the pandemic hit and Falzone had to close. But again the little restaurant that could, with the help of government COVID subsidies, survived. Off Vine reopened as soon as it was safe and struggled to get enough servers. Some loyal employees returned. Amid all of that, Falzone was blindsided by the sale and was given notice that when the lease expires this April he would be required to vacate the property.
It turns out that Earl Carroll, in a seeming premonition and an act of love for his inamorata, added a codicil to his will stating that if he and Wallace should die together the property would go to her heirs. It was still owned by Wallace’s descendants 75 years later when they yielded to a multimillion-dollar offer from Invesco, a development firm that was interested not in the lovely little house but the land on which it stands.
Notice also was given to other nearby restaurants. A Chipotle has already relocated.
“This has been my life for 26 years. It’s been my heart, my soul, my baby and my family. It’s been my everything,” Falzone told me. “It’s not just a restaurant. People are coming into a family home and they are our family. It’s a home where there’s love, good food and good cheer.”
Offenhauser, who also is a founding member of the Oy Luck Club and a powerful advocate for Hollywood preservation, sees this as another nail in the coffin of Hollywood’s history.
“There is a real Hollywood and it’s getting smothered,” she told me as we commiserated about the impending loss. “It is not a sign of progress to destroy things that are meaningful. It’s important to integrate them with whatever is new that is compatible and complementary.
“It’s not rocket science to be able to save Off Vine,” she said. “If you recognize something is important you can build around it. It’s possible to build new and not destroy the old. In the alternative, the building could be moved to another lot. It’s not that complicated.”
We reflected on how many of us who are transplants to Hollywood made it our real hometown.
“For whatever reason when we came to Hollywood we bonded with it deeply,” Offenhauser said. “This bungalow reflects that. It means something much bigger than our individual personal memories. It manifests what neighbors mean; what Beryl’s life meant; how Richard knit people together with his unique grasp of food in a home; what a livable humanistic neighborhood in Hollywood — with neighbors walking by that porch — did mean and should mean.”
When I asked Falzone the other day what happened to the pictures and memorabilia of the beautiful Beryl Wallace that adorned the walls of Off Vine as long as I had been going there, he said the family came and collected everything. Sadly, there remains no evidence that the glamorous star ever lived there.
Deutsch, longtime special correspondent for the Associated Press, is known for covering the trials of O.J. Simpson, Angela Davis, Phil Spector, Patty Hearst, Charles Manson, Robert Blake, Lyle and Erik Menendez, Michael Jackson and many more. She has been a resident of Hollywood for more than 50 years, first in the Hollywood Heights and currently the Hollywood Dell.
Liquidity in stocks generally refers to how quickly an investment can be bought or sold and converted into cash. The easier an investment is to sell, the more liquid it is. Plus, liquid investments generally do not charge large fees when you need to access your money.
For the average investor, liquidity is an important consideration when building a portfolio, as it’s an indicator of how easy it is to access their savings. That can be important to know and understand when sizing up your overall strategy.
Types of Liquidity
Liquidity comes in two forms: Market liquidity and accounting liquidity. Here’s how the two are different.
Market Liquidity
Market liquidity refers to how quickly a stock can be turned into cash. High market liquidity means there’s a high supply and demand for an asset. That, in turn, makes it easy for buyers to find sellers and vice versa. As a result, transactions can be completed quickly, even when stock values are dropping.
Accounting Liquidity
Accounting liquidity is related to an individual’s or company’s ability to meet their financial obligations, such as regular bills or debt payments.
For an individual, being liquid means they have enough cash or marketable assets (such as stocks) on hand to meet their obligations.
Companies measure liquidity slightly differently by comparing current assets and debt. In addition to cash and marketable assets, current assets also include inventories and accounts receivable, the money customers owe on credit for goods or services they’ve purchased.
Investors may pay attention to company liquidity if they are researching that company’s stock as a potential buy. Companies with higher liquidity may be in better shape than those in risk of defaulting on their debt.
How Liquid Are Different Assets?
An investor’s financial portfolio may be made up of a number of different assets of varying liquidities, including cash, stocks, bonds, real estate, and savings vehicles like certificates of deposit (CDs). Cash is the most liquid asset; there is nothing an investor needs to do to convert it into spendable currency.
On the other hand, an investment property is an example of a relatively illiquid asset, as it might take a long time for an investor to sell it should they need access to their money.
CDs are also relatively illiquid assets because they require investors to tie up their money for a preset period of time in exchange for higher interest rates than those available in regular savings accounts. Individuals who need their money early may have to pay hefty fines to access it.
Stocks generally fall on the relatively liquid side of the liquidity spectrum. Stocks that are easy to buy and sell and said to be highly liquid. Stocks with low liquidity may be tougher to sell, and investors may take a bigger financial hit as they seek buyers.
What Is Liquidity Risk?
Liquidity risk is the risk that an individual won’t be able to find a buyer or seller for assets they wish to trade during a given period of time, which can lead to adverse effects on the price. Liquidity risk is higher for complex investments or investment vehicles like CDs that may charge penalties to liquidate or access funds early.
Are Stocks a Liquid Asset?
For the most part, stocks that are traded on a public exchange are considered liquid assets. Some stocks, like those traded on foreign exchanges, may be less liquid as it takes more time to execute a trade.
Generally speaking, when an individual wishes to execute a trade, they use a brokerage account to issue a buy or sell order. The broker then helps match the individual with other buyers and sellers hoping to take the opposite action.
This process can take a little bit of time. Most stock trades settle within a two-day period. A stock trade executed on a Wednesday would typically settle on Friday. Settlement is the official transfer of stocks from a seller’s account to the buyer’s account, and cash from the buyer to the seller.
Because it can take some time for trades to be executed, there can be a difference in price between when an individual places an order and when that order is fulfilled.
How to Calculate a Stock’s Liquidity
One way to figure out a stock’s liquidity is by looking at a metric known as share turnover. This financial ratio compares the volume of shares traded and the number of outstanding shares. A stock’s volume is the number of shares that have been bought or sold over a given period. Outstanding shares refer to all of the shares held by a company’s shareholders.
Higher share turnover indicates high liquidity; investors have an easier time buying and selling. Investors might want to pay close attention to low share turnover, as this can indicate they may have a difficult time selling shares if they need to.
Another measure of a stock’s liquidity is the bid-ask spread. Bid price is the price an individual is willing to pay at a given point in time. The ask price is the price at which a buyer is willing to sell. The bid-ask spread is the difference between the two.
For highly liquid assets, the bid-ask spread tends to be pretty small — as little as a penny. This indicates that buyers and sellers are generally in agreement over what the price of a stock should be. However, as bid-ask spread grows, it is an indication that a stock is increasingly illiquid.
A wide spread can also indicate that a trade may be much more expensive to execute. For example, there may not be enough trade volume to execute an entire order at one price. If prices are rising, an order can become increasingly pricey.
Examples of Liquid Stocks
The most liquid stocks tend to be those that receive the most interest from investors. The large companies that are tracked by the S&P 500 Index.
Why Stock Liquidity Is Important for Investors
The relative liquidity provided by stocks can be a boon to investors. Stocks help provide the growth needed for investors to meet their savings goals. They are also relatively easy to buy and sell on the market, allowing investors to access their savings quickly when they need it.
The Takeaway
Liquidity is a measure of the ability to turn assets into cash without losing value. So it’s an important metric for investors to pay attention to as they construct their portfolios. But liquidity is just one of many factors to consider when investing.
Investors may want to know how liquid their holdings are so that they can choose the appropriate mix of investments that align with their risk tolerance. It may be comforting to some to know that they can sell investments with relative ease, rather than have their money tied up for the long-term.
Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
For a limited time, opening and funding an account gives you the opportunity to win up to $1,000 in the stock of your choice.
FAQ
What is good liquidity for a stock?
Good liquidity for a stock refers to an investor’s ability to sell the stock in exchange for cash. If a stock is liquid, then it should be relatively easy to sell. If a stock is illiquid, or has bad liquidity, it may be more difficult.
What is a “Liquidity Ratio?”
A liquidity ratio is a financial ratio that can help an investor determine a company’s ability to pay off its debt obligations, particularly in the short-term. There are several liquidity ratios that can be utilized.
Is a higher liquidity better?
Generally, yes, a higher liquidity is better for investors, as it can signal that a company is performing well, and that its stock is in demand. It can also be easier for an investor to sell that stock in exchange for cash.
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In today’s digital world, having a checking account is not just a luxury, but a necessity. As a leading financial institution, Chase, a division of JPMorgan Chase Bank, N.A, offers a variety of checking accounts to suit different needs.
This guide will provide an overview of how to open a Chase checking account, detail the available account types, and explain their associated benefits and costs.
The Basics of Opening a Chase Checking Account
Opening a Chase checking account is a simple and streamlined process. It’s designed to be accessible whether you prefer to handle your banking online or in-person. With over 4,700 branches, JPMorgan Chase Co. has made it possible to open an account virtually anywhere in the U.S.
When preparing to open your account, you’ll need to have certain information on hand. This includes your Social Security Number or Tax ID number, which is a basic requirement for any financial transactions in the U.S. You’ll also need a valid form of identification, such as a driver’s license or passport. Chase uses this information to verify your identity, ensuring your financial safety and security.
In addition to the above, you’ll also need to provide personal contact information. This includes your address, email, and phone number. This is so Chase can contact you about account information, and so they can send you important banking documents.
For new customers under the age of 18, a parent or guardian will need to co-own the account. This is standard practice at many financial institutions. It ensures that there’s an adult associated with the account who can manage the account responsibly.
Choosing the Right Chase Checking Account for You
Choosing a bank account is a critical decision, and Chase offers a variety of options, each with its own features, benefits, and costs. These include Chase Total Checking®, Chase Secure Banking℠, Chase Premier Plus Checking℠, and Chase Student Checking. It’s essential to review each option and choose one that fits your lifestyle and financial goals.
Chase Total Checking®
Chase Total Checking® is the most popular checking account offered by Chase. With access to over 15,000 ATMs and 4,700 branches, it offers a range of features including Chase Overdraft Assist℠, Zero Liability Protection for unauthorized debit card transactions.
Additionally, you’ll have the ability to manage your money on the go with the Chase Mobile® app. You can deposit checks, pay bills, and transfer money virtually anywhere, which makes it an excellent option for everyday banking needs.
The monthly service fee for this account is $12, which can be waived if you meet specific requirements such as maintaining a minimum balance, direct deposit, or holding a combination of qualifying Chase accounts.
Chase Secure Banking℠
Chase Secure Banking℠ is designed to help you manage your money without worrying about maintaining a minimum balance or unexpected overdraft fees. With a monthly service fee of $4.95, you can enjoy features like early direct deposit, paying bills, and cashing checks. It also allows you to send money and access Chase’s extensive network of ATMs and branches, all from the Chase Mobile app.
One significant advantage of this account is the absence of overdraft fees. This account enables you to spend only what you have, thus promoting responsible spending habits. Other benefits include no fees on money orders, cashier’s checks, and when using the Chase Online Bill Pay.
Chase Premier Plus Checking℠
The Chase Premier Plus Checking℠ is a premium checking account that not only gives you the standard benefits of online bill pay and mobile banking through the Chase Mobile app but also earns you interest on your balance. You’ll have access to 15,000 ATMs and 4,700 branches, Chase ATMs, and a Chase debit card with chip technology.
This account comes with a $25 monthly service fee that can be waived under specific conditions. These include maintaining a qualifying average balance, having a linked qualifying Chase mortgage, or for current U.S. service members and veterans with a qualifying military ID.
Additional perks include no fee for the first four non-Chase ATM transactions, Chase design checks, and no monthly service fees on up to two additional linked Chase checking and personal savings accounts.
How to Open a Chase Checking Account Step-by-Step
Whether you choose to open a Chase account online or in-person, the process is simple and hassle-free.
Opening an Account Online
To open a Chase checking account online, follow these steps:
Visit the Chase website and select the ‘Open an account’ option.
Select the type of account you wish to open.
Click ‘Open account’ and fill in your personal information.
Review the Deposit Account Agreement and other disclosures.
Fund your new Chase bank account.
Submit your application.
You should receive an email confirmation, and your debit card and account details should arrive by mail within 7-10 business days.
Opening an Account In-Person
If you prefer to open a Chase checking account in person, follow these steps:
Visit a Chase branch. You can use the ‘Branch/ATM locator’ on the Chase website or Chase Mobile app to find a branch near you.
A Chase representative will guide you through the process, help you understand the various account options, and complete the application form.
Review the Deposit Account Agreement and other disclosures.
Fund your new account.
You will receive a temporary debit card immediately and your permanent debit card will be mailed to you.
The in-person option offers the advantage of personalized assistance from a Chase representative who can answer any questions you might have and ensure a smooth application process.
Understanding Chase’s Monthly Account Fees
Understanding the monthly service fees associated with your checking account is crucial to managing your money effectively. Most accounts come with different fees, depending on the account type.
For instance, the Chase Total Checking account has a $12 monthly service fee. However, this can be waived under certain conditions. These include a direct deposit totaling $500 or more. It can also be waived by maintaining a beginning day balance of $1,500 or more. Alternatively, an average beginning day balance of $5,000 or more across qualifying accounts can also waive the fee.
The Chase Secure Banking account is a bit different. It has a $4.95 monthly service fee with no waiver option. On the other hand, the Chase Premier Plus Checking account has a $25 monthly service fee. But, this fee can be waived. You can do this by meeting certain balance requirements or having linked accounts.
Understanding Minimum Balance Requirements for Chase Checking Accounts
Chase checking accounts have different minimum balance requirements, which can influence the account’s cost. The Chase Total Checking account, for example, requires a daily beginning balance of $1,500 or more to avoid the monthly service fee.
For the Chase Premier Plus Checking account, an average beginning day balance of $15,000 or more in any combination of linked qualifying accounts or a linked Chase mortgage can help avoid the monthly service fee.
The Chase Secure Banking account, however, does not require a minimum balance, making it an attractive option for those looking for a low-cost, simple checking account.
Perks and Drawbacks of Chase Checking Accounts
The checking accounts offered by Chase come with several perks, such as access to a broad ATM and branch network, excellent customer service, and a highly-rated mobile app for easy access to your money. Furthermore, accounts like the Chase Total Checking and Chase Premier Plus Checking offer additional benefits like earning interest and waiving the monthly service fee under specific conditions.
However, these accounts also have some drawbacks. Monthly service fees, unless waived, and ATM fees for non-Chase ATMs can add to your banking costs. Furthermore, the interest rates offered on these accounts are typically lower than those offered by online banks.
Is a Chase checking account right for you?
Choosing the right checking account depends on your personal financial needs and lifestyle. If you value in-person banking, broad ATM and branch access, and a comprehensive mobile banking experience, a Chase checking account could be a good fit. However, if you’re looking for high-interest rates or zero fees, you might want to explore other financial institutions.
It’s essential to consider the different features, benefits, and costs associated with each account type. Make sure to read the fine print and understand the terms of the Deposit Account Agreement before opening a new account. Whether you’re a student, a professional, or someone looking for secure banking, Chase has a variety of options to help you manage your money effectively.
Today we’ve got our second installment of Designer’s Take, our latest series where our favorite designers and stylists share what they would do if they could ge their hands on our new/old house reminder: I’m calling it that since the house is 140 years old!. In this edition, our very own spring intern Ali Hartwell is offering her take on the perfect dining room. To jog your memory, here is what the dining room looked like!
Definitely scary on the surface, but here’s what we’ll have to work with when construction is done!
We’re really not changing too much – everything we do in this room will be cosmetic. What? You think we should leave the raspberry pink ceiling?? The dining room is a pretty large space with a fireplace centered on the far left wall. There are also the original pocket doors that separate the dining room from the adjacent living room. A large set of bay windows sits on the opposite wall. You can see what they look like from the exterior here. It’s definitely going to be a fun space to play with! But here’s what Ali would do.
Ali’s Designer Take: I think I’ve developed such a fondness for dining areas probably because a solid chunk of my life has been spent sitting within them. So many of my favorite memories are tied to laughing and connecting with family and friends over home-cooked meals and MANY a bottle of wine. That’s why when it comes to dining room decor, I always try to create a look that’s going to invite people to sit down and stay awhile.
If the space allows, I love defining a dining area with a piece of statement art to serve as the backdrop to the actual table setting. And what better way to compliment said artwork than with a completely badass lighting fixture?! Since there’s not really much to a dining area, I say go big or go home.
I imagine an Erin’s old San Franciscan Victorian to be the perfect setting for a killer dining room—high ceilings, crown molding, hardwood floors and plenty of natural light streaming in from oversized windows make for an already inviting space and the perfect blank canvas.
Here’s a look I think would play nicely in Erin’s dining room:
GET YOUR SHOP ON:
> Table
> Light
> Chairs
> Art
> Pitcher
> Dishware
> Planter
> Rug
I think Ali has the right idea when it comes to our dining room. I see a statement chandelier in my future and I’m very excited about that. And a eye-catching piece of art over the fireplace would be quite nice too. The search for the perfect dining table is likely to be the ultimate treasure hunt but only time will tell. Once our walls are closed up and we’re moving on to finish work I think it’ll be much easier for a design direction to take shape.
Where do you think it should head??
To see more of Ali’s design work, you can visit her website or follow her visual musings via Instagram @athartwell.
For our first Designer’s Take on what we should do in our kitchen, CLICK HERE! And for even more inspiration for our renovations you can check out my remodel Pinterest board and our Tumblr!
image 1 via The Design Files // image 2 via arper // image 3 via My Domaine
Matt Witte has been a full-time teacher since 1999, and that didn’t change when he started his real estate business in 2012. Despite the fact that he’s still teaching full time, he sold 42 homes himself just last year. On today’s podcast, Matt shares how he’s able to run a real estate business while working a full-time job, why he decided to start a team, and where he plans to take his real estate career. Matt and Elliot Hoyte also discuss ways to show clients that you care, offer advice on bringing in new business, and more.
Listen to today’s show and learn:
About Matt Witte [1:46]
How Matt balances two full-time jobs [2:14]
Why Matt got into real estate [3:19]
Making sales without being salesy [4:51]
The stigma associated with being a part-time real estate agent [6:27]
Matt’s first year in real estate [7:22]
Matt’s favorite platform for real estate leads [8:48]
Another fan of Follow Up Boss [9:30]
About The Matt Witte Team [10:00]
The transition from solo agent to team leader [12:37]
Similarities between teaching and real estate [13:48]
What Matt’s day looks like [15:36]
Massachusetts’ real estate markets [17:54]
Working with clients from different geographic locations [20:22]
Being assertive with your clients [22:17]
Crouching Tiger, Hidden Agent [23:28]
The challenges of working in education [24:45]
Matt’s real estate goals [30:35]
Elliot’s thoughts on short-term rentals [32:33]
Supplementing commissions with coaching [35:43]
A system for streamlining tasks your clients must do before closing [38:50]
Ways to show clients that you care [43:00]
Ways to generate referrals from other real estate agents [47:12]
The Real Estate Rockstars Mastermind [49:23]
Getting on the first page of Google [51:58]
Where to find and follow Matt Witte and Elliot Hoyte [54:50]
Matt Witte
The Matt Witte Team is your one stop shop for all of your real estate needs. Not only is Matt Witte a high producing Realtor in North Andover MA he has also resided in the North Andover area for over 30 years. Matt’s specialties include: Buyer’s Agent, Listing Agent, Relocation, Consulting.
50% of Matt’s clients are teachers! A number of his family members are educators and he has a true appreciation for what they have contributed to their communities. You can trust that their core values are embedded in Matt’s overall approach to real estate. He considers his buyers and sellers to be family and he has enjoyed working as a Realtor since 2010. Feel free to call/text/email Matt so you can work together to meet your real estate needs. No pressure! Calls returned within minutes, not hours!
Related Links and Resources:
Thank You Rockstars!
It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
The rental community isn’t just made up of faceless corporations. That’s where private landlords come in.
There are so many decisions to be made when deciding on a new home. Although things like location, cost and floor plan are all ultra-important, it’s equally as critical to think about exactly what type of landlord you want.
That’s because there are some pretty significant differences between private and corporate landlords. Depending on your personal preferences, one or the other is likely to stand out in a more positive way, making the entire rental process easier on everyone.
How private landlords are different from corporate landlords
Unlike corporate landlords who work for a big company with dozens, even hundreds of units per property, private landlords typically own the property themselves. In fact, there’s an entire industry worth of people who scoop up houses, condos and townhomes to turn around and rent them out as investment properties.
Occasionally, they’ll outsource a property management company to handle the leasing process, but often they’ll just do it themselves if they’re local. This comes with a variety of pros and cons which vary in significance from person to person.
Private landlords are a one-stop shop
Private landlords are always the primary contact for any issues or questions regarding their property. Sure, they might outsource a leaky faucet to a handyman, but they’re still the first person a renter should call. This is not always the case when dealing with corporate landlords. In fact, there’s often a different person on the other end of the line. Private landlords also tend to have more in-depth insight into the property, since they’re not managing hundreds of cookie-cutter units.
There’s no one else to complain to
Most private landlords are helpful and responsive, but occasionally one doesn’t provide the level of service most renters need. Since there’s no one above a private landlord to consult when that happens, it can make for some uncomfortable conversations and situations. Avoid this pitfall by getting a reference from a previous renter.
Find out if the landlord was quick to respond to questions, handle repairs, etc. You can also consult Yelp or sites like Review My Landlord or Rate My Landlord for reviews to find out if previous renters were satisfied with the landlord.
You might be a private landlord’s one and only
Even private landlords with multiple properties still won’t have the steep number of renters to handle as corporate landlords do. This means that you’ll be on a first-name basis with your landlord, and it’s unlikely they’ll confuse your unit or request with anyone else’s.
But private landlords don’t have corporate resources
Although private landlords are typically quick to respond, they also often have other jobs to contend with. As a result, the response time for an urgent issue might be slower than with corporate landlords, who typically have someone available round-the-clock to handle sudden matters.
Corporate landlords also usually keep repair professionals on staff to quickly fix any major issues. Private landlords may also try to avoid major maintenance requests and repairs (like a new appliance) until they’re absolutely necessary because the cost is literally coming out of their pocket.
Private landlords are often more flexible
Since the private landlord owns the property outright, they can make the decisions on when to bend the terms of the lease and when not to, without worrying about the strict rules put forth by a corporation.
So if you want to sublet a room to your visiting cousin for a few months or get a small dog, it’s easy enough to talk it over with a private landlord and write the new terms into an existing lease.
Private landlords offer fewer bells and whistles
Most corporate apartment communities these days come with a ton of perks, like fitness centers, swimming pools, dog parks, tennis courts, concierge service and so on. In most cases, however, private landlords can’t guarantee this level of finesse on their own property.
Renters at private properties enjoy more privacy
For many renters, the increased privacy is worth forgoing all of the extras. First, unlike an apartment a house is physically separate from other properties, giving the renter a lot of literal space. Even townhomes and condos are found in buildings with thicker, better-quality walls. But then there’s the added privacy that private landlords are not usually on-site or anywhere too close by to keep tabs on tenants.
Private landlords have the control
Follow the terms of a private rental lease to the letter because the landlord controls the contract and can enact it if they see fit. This means that you could get fined or evicted for breaking lease terms, often without any of the warnings that corporate landlords build into their contracts.
Renting from a private landlord is distinctly different, but not necessarily in a bad way
No rental experience is likely to be 100 percent positive. Weigh the pros and cons of renting from private landlords and land on the option that best suits your personality and tastes.
A freelance writer based out of the Atlanta area, Alia has penned articles during her decade+ career for such sites as HowStuffWorks, TLC, Animal Planet, Zillow and many more. Her favorite things to write about include fitness, nutrition, travel, healthcare and general lifestyle topics. A graduate of the University of Georgia, Alia’s an avid Dawg, but she also loves reading, sewing, eating all things chocolate and playing sports with her husband, three boys and beloved border collie, Flash.